SAN JUAN — Puerto Rico and its federally appointed oversight board have reached a deal to avoid litigation over much-needed economic overhauls in the bankrupt U.S. commonwealth.

Governor Ricardo Rosselló and the island’s legislature agreed to repeal protections that make it difficult for private-sector employers to fire workers at will, in hopes of spurring on-island hiring, Rossello said in a statement Sunday night.

In return, the board will not push to eliminate Christmas bonuses or reduce sick days, the statement said.

In a separate statement Monday morning, the board said it planned to revise accordingly the island’s fiscal turnaround blueprint, which Rosselló had opposed, avoiding litigation over its implementation.

The Author

John McCarthy

John McCarthy has been reporting on the U.S. Virgin Islands and the Caribbean region since 1989. John's articles have appeared in the BVI Beacon, St. Croix Avis, San Juan Star and Virgin Islands Daily News. He is originally from Detroit, Michigan.